Wolfspeed Inc., a leading company in silicon carbide technologies, has initiated a pre-packaged restructuring process under Chapter 11 of the U.S. Bankruptcy Code. This move is part of a strategic effort to reduce its overall debt by approximately 70%, amounting to a $4.6 billion reduction, and decrease its annual cash interest payments by about 60%. This restructuring aims to strengthen Wolfspeed's capital structure, enabling it to better execute its long-term growth strategy and accelerate its path to profitability. The company expects to emerge from this process by the third quarter of calendar year 2025, and it continues to operate normally, ensuring delivery to customers and payments to vendors. Wolfspeed has approximately $1.3 billion in cash as of the third quarter of fiscal year 2025, providing sufficient liquidity to support its ongoing operations. The restructuring has strong support from key lenders, including holders of senior secured notes and convertible debtholders. Legal and financial advisors, including Latham & Watkins LLP and Perella Weinberg Partners, are assisting Wolfspeed in this process.